Etihad Airways is providing Air Berlin with $350 million to ease its passage through the financial slow down reports
Bloomberg.
Abu Dhabi-based Etihad will lift its Air Berlin stake from 2.99 percent to 29.2 percent by buying 31.6 million new shares for 72.9 million euros ($95 million) while providing five-year financing facilities of as much as $255 million for new jets.
It also features a code sharing deal which will allow Etihad access to Air Berlin's key
destinations of Germany, Austria, Switzerland and Spain.
“Lufthansa won’t be happy,” said Joe Gill, an analyst at Bloxham Stockbrokers in Dublin. “The big three are concerned about what Middle Eastern carriers are going do next and this is a very tangible move. For Air Berlin, this on its own won’t sort things out, but it provides a major plank in providing options.”
Together, Etihad and Air Berlin carry over 40 million passengers each year over 239
destinations, worth over $9 billion in revenue.
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